Why Did Paytm's Transaction Volume Decline Amid Rising UPI Use?

NPCI Data Reveals Surge in Digital Payments, While Paytm Faces Challenges

Paytm's transaction volume declined despite the overall rise in UPI use, potentially due to increased competition from apps like PhonePe and Google Pay. Users may be drawn to platforms offering better features or incentives. Additionally, Paytm's recent challenges in customer engagement could have impacted its performance. As digital payments evolve, user preferences are shifting rapidly in this dynamic landscape.

In August 2024, a staggering 14,963.05 million transactions were conducted through the Unified Payments Interface (UPI), marking a significant increase from 14,435.55 million in July. This year's figures reflect a robust year-on-year growth, jumping from 10,586.02 million transactions in August 2023.

The total value of transactions reached ₹20.60 lakh crore, a slight dip from the previous month's ₹20.64 lakh crore. Among these transactions, Person-to-Merchant (P2M) payments dominated, comprising 62.40% of the total volume, while Person-to-Person (P2P) payments accounted for 37.60%.

PhonePe maintained its lead with 7.2 billion transactions, followed by Google Pay at 5.6 billion and Paytm with 1.07 billion—down from 1.12 billion in July. Interestingly, most payments fell within the ₹0-500 range, highlighting a trend toward smaller transactions.